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tv   The Willis Report  FOX Business  January 30, 2013 6:00pm-7:00pm EST

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melissa: how much would you pay for it? >> i wouldn't put -- i wouldn't have -- zero. melissa: new york city's don't honk signs are coming down. the $350 sign is in place for unnecessarily beeping the horn. i'm in trouble then. the cityy wants to declutter the streets. complaints about honking have gone down 63% since five years ago so the signs, seems like -- >> only time i could understand. have you tried to read the parking signs? >> you really do. i, maybe it's because i've always driven here, but i never notice people honking. i could be immune. >> it's one hand on the wheel and one hand on the horn. >> that's new york in general. or that or cursing. that's how we are. >> my brother, one hand on the
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wheel, one hand on the horn, and e you don't stop for the cars you hit. sorry, johnny. melissa: -- >> i love how your 5-year-old son is, like, mom -- melissa: thanks, guys. that's all the "money" we have for you today. see you back here same time tomorrow. "the willis report" is coming up next. honk! ♪ gerri: hello, everybody. tonight on "the willis report," make sure it's true, red white, and blue. don't buy another thing until you hear what we found out about made in america. also, markets hit new highs. what's driving the latest run? can it last? your smart fun about to shame you in public. tonight, we have the apps that keep you in line and on time. "the willis report" is on the case.
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♪ more on those stories in a moment, but, first, when you buy made in america, how do you really know it's made in america? labeling laws are confusing, and some products, well, they just outright lie about where it's made. if you want a healthy economy, keep jobs at home, how can you be sure you do the right thing. to sort through it all is todd marks. todd, great to have you on the show. thank you so much for being with us. >> oh, my pleasure, gerri. gerri: how do you know? they label these things every which way. how do you know which products are made in america? >> well, they are very serious and very complex, arcane rules governing what it means to be made in america. there's claims called qualified, made in the usa, no ambiguity.
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there's qualified claims, made in the u.s. of parts made in china. they are created here. gerri: hey, todd, like apple, created in california, asemilled in china. >> that confusion prompts people to scratch their head. we get letters all the time. how can it be? the laws are clear, but they are not. well, they may state that, you know, when they create laws about what it mean to be made in america, it says, in order to say it's unqualified made in america, there can be no ambiguity, and you don't want to mislead a reasonable person. you can't plant that idea. the companies do it with symbols, slogans, and it's hard to tell. gerri: for example, and this is from my real life, okay? i bought salmon this weekend. it was wild caught alaskaian. that's the way it was labeled, but it was labeledded product of thailand. which is true? >> yeah, that's a great one for games, and you get people together, saying, how can this
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be? i encounteredded because we track down these claims, how -- can't figure it out. with the salmon example, if you believe it, it, in fact, is truly alaska caught salmon. however, it's cheaper to send that salmon all the way to thailand to be gutted, to be skinned, to be processed, to be packaged, and then shipped back to the u.s. on a boat and sell it at retail -- gerri: wow. >> it's cheaper. gerri: cheaper, but now my fish went halfway around the world twice just to get to me. that's ridiculous. >> it's in the fresh fish. it's in a package. gerri: a couple more. this is fascinating. blueberries from oregon, product from chile, how is that the case? >> same thing. because of the labor laws, they have country of origin labeling. any product that comes to the united states from a foreign country has to be identified as
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a product of a particular country where it was sub substantially made. now, the problem is when products aren't made in the usa with exceptions of furs, for example, and cars, there doesn't have to be a claim. stuff coming here does. you get crazy detours that a product takes in the interest of processing, and that's what it's all about and why your oregon blueberries are in that boat. gerri: how often does uncle sam prosecute on saying it was made here, but it was not? >> the federal trade commission is the one who is making sure that claims are on the up and up. frankly, though, very little violations cited. one company since the 1990s has actually, you know, had a civil penalty because when the government does, in fact, get a complaint, and believe it or not, most do not come from consumers like you and me, but other companies complaining about a product because they
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think they are getting an unfair advantage. what happens, you know, when they do this, you know, it kind of -- it doesn't happen often, but the goal of the government is to get the company to stop doing that bad behavior and to not -- gerri: they are not active todd, not doing it very much, i tell you. >> bigger priorities. gerri: this comes from your story. would you rather buy america, 78% says, yes, we would. tell us about that. people are willing to pay more for american made. >> as a matter of fact, 60% of people are willing to pay 10% more. 25% said they are willing to pay 20% more because there is a perception of higher quality. get this. there was an actual survey done of chinese consumers by an independent consulting group, and they found out that 60% of chinese would rather buy the american version of a product, all things being equal, because
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the quality was better. gerri: well, okay, but your group looked at the american products, and i have a couple of these, to find out if america made was better. brooks brother, a cotton shirt was better; right? >> what we did, had our textile experts eyeball six really high profile products from high profile american companies, ll bean, land's end, and the shirt was impeccable. that brooks brothers shirt had a perfect fit and finish. the stripes lined up, attention to detail. it was a fine a garment as we've seen. gerri: new balance shoes, though, not a high mark. >> here's one of the shoes, an you can tell it's made in america. says so right here. they have a couple factories in the u.s.. i applaud them for making stuff here, but in the case of this particular sneaker, it was well built, double stitching at most joints, good adhesion in the
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seoul and upper, but the synthetic materials were cheap, stiff, unflexible, and felt because of that inflexibility, it could result in unusual wear to the shoe. also, we found out the materials were not pourous which could retain heat. it was heavier than the running shoes we see made today. the trends in lightweight, but this is a clungy shoe. they were well made, just not the best of the breed. gerri: you are so thorough. thanks for coming on tonight. great stuff. appreciate the time. come back soon. >> any time you want, thanks a lot. gerri: thank you. all right, buying made in america is not just patriotic, but you can make money at it. lost half the manufacturing base in the past 60 years, we still, still, make close to a fifth of the world's products. that's what it means to be the worldest biggest economy means invest in the company that sell to the other $65.billion people in the world.
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highlighting the companies making it here in america. caterpillar, ge, ford, whirlfool are just -- whirlpool are just a few that come to mind. in seven years, america is the biggest oil producer. we have the cheapest natural gas. wages another factor, stagnant here, but in china, for example, rising 15% to 20% a year. next time you buy made in america, you're not just supporting jobs here at home, but helping your retirement portfolio too. well, later in the show, it's not the sunshine state drawing new york executives to florida, but the fact there are no taxes. one former new yorker tells you his story. can an ad publicly shame you out of bad habits? i'll break it down, next. ♪ all stations come over to mission a for a final go.
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♪ gerri: escaped from new york. it's not just something retirees say. a growing number of working professionals are leaving new york and other states in the northeast for conditions down south, and not just for lower taxes and more sunshine. what's the draw? joining me now, ceo of hedge cofrom new jersey calling west palm beach his home. i've been there many times. that's a nice place to live, my friend. congratulations to you. >> it's fantastic, thank you so much, gerri. thanks for having me also. gerri: thanks for being here. what pushed you out of new york, and are you glad you did it? >> oh, absolutely. i'm someone that went to the university of florida for college, and i was dying to get back, frankly. i went and worked on wall street for seven years, and when i
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started my company, i had the ability to open up down here in west palm beach the -- the deciding factors were the affordability of starting a business here and operational expenses lower than in new york city. gerri: show folks what state and local taxes look like. new york compared to florida. new york, 14%. florida, 0%. what does that mean to you in dollars and cents for your company? >> well, it means a lot. when you talk about the hedge fund industry in general, you know, i think these numbers are incredibly impactful. a fund manager making a million dollars a year, not up usual in the industry, he's getting taxed, if he lives in new york city, at 14.7%. that's $147,000. that's very impactful, and certainly -- gerri: painful, my friend. talking about crying yourself to sleep every night. >> absolutely. gerri: that's a lot of money, and then you got to pile on federal income taxes on top of
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that, and goodness knows what else. you know, we were running some numbers because, you know, professional sports figures get a lot of attention on this score. we figured out that tiger would save $100 million over the course of his golf career, 16-year career, if he moved to a no income tax state, and phil mickelson, talk about this publicly recently, would save $53 million. do you think you're the canary in the coal mine here that a lot of people will follow you? >> oh, yes. tiger is a resident of florida so tiger's a res demented of jupiter, not far from us. gerri: nice place to live. >> not bad, but, you know, phil mickelson made that point also that he's giving away a large sum of the income by living in california, and if he was to move to florida, he would save quite a lot of money. i think that was probably some of the reasons behind, you know, even some of the sports figures, as you mentioned moving down here. like some of the members of the miami heat. gerri: well, you know, you
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mentioned taxes. there are other reasons, too. what are the other attractions to living in florida? >> well, outside of taxes, you certainly have a great lifestyle. for those that enjoy outdoor activities, boating, fishing, playing golf year round, playing tennis, i think florida's second to none. also, -- gerri: the commute time? do you have a big commute time? >> i have probably 15 minutes of the commute. i have no tolls to pay. my parking on a monthly basis, ready? $25 a month. gerri: property taxes? what are property taxes like? >> low. depends on the municipality, but less than 2% so the sales tax is lower. how about no estate tax, gerri? when you talk about planning your estate, you know, give away 6% to 10% of the your money to the state, it's a big number. gerri: all right. i have to go through another graphic here because it's fascinating. we went to united lines to ask, okay, where are people leaving
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from? new york, new jersey, connecticut, michigan, illinois? what's the big inbounds state. dc, washington, d.c. because they have all the money. oregon, nevada, north carolina, south carolina so people are moving south. that's definitely the case. >> oh, absolutely. gerri: a quick story before we came to air saying you were able to actually nab a present for your company that you otherwise would have not been able to get if he had to move to new york or new jersey. >> that's right. he's a perfect example. the president here was a managing directer at ubs, and every day he would wake up at 4:30, and he would get to the office after going through tremendous commute from new jersey, spending a ton of money on gas, on tolls, on parking, finally got into the office, and getting home late in the evening. what that did was it -- it disallowed him to enjoy his child's or that period in his child's life.
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he basically missed out; right? he didn't see them grow up, missed them because of the commute and workload. whereas, here, he's able to come to work at 8:30, go home at 5:30 and enjoy the time with his children that he otherwise would not have been able to have. gerri: wow. i can relate to that. don't push all the prices in florida through the roof on real estate. i might join you. >> it's still low. gerri: thanks so much. >> my pleasure. thanks for having me. gerri: what do you think? here's the question tonight. would you move to cut your taxes? log on and vote on the right hand side of the screen. i'll share the results at the end of the show. more coming up in the show. wait until you see the outrageous video leaked to fox business mocking patients under obamacare. fox business' liz macdonald is here, and, next, breaking down the most sadistic smart phone apps, ever. they sound crazy, but they force
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you to get stuff done. stick around. ♪ [ kitt ] you know what's impressive?
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♪ gerri: worldwide, public ridicule if you don't go to the gym. there's app app for that. coming up, the most sadistic apps to break your bad habits.
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gerri: smart phone apps transformed the world. well, a little bit; right? at least they changed your personal relationship with technology, and, now, they want to beat you into submission. i kid you not. the website lifehacker.com, had a story about sadistic apps, some of which people actually pay for, and it was so funny i had to share with you. number one, can't get up in the morning? constantly hitting snooze on your alarm clock?
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try better me. it's a free app that posts a message to the facebook time line telling your friends you're too lazy to get up in the morning. it hassles you for free. number two, if you're an exercise -- if you don't like to exercise, and you can't get to the gym, there's all kinds of help out there for you. gympacked is straightforward. attach your bank account, and when you don't check in, they take money out of your account, no kidding. the money it collects is redistributed to other people, other users who went to the gym. i don't know if you like that or not. there's another app similar that works the same way, but it gives the money to your friends rather than to strangers. number three, does your to do list grow longer and longer an longer in? you never make progress, nothing is scratched off. if you don't mind making commitments public, getup, that's the name of it, check in
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or else get up shows your friends when you didn't make it. this includes going to gym, church, a dance club, while it's not shaming you, it broadcasts failures to the world. finally, another alarm app. this called sleepifyoucan, doesn't shut off until you get up and get off a bed and take a picture of a designated spot like your bathroom or front door. this app, you can be hassled for free. again, thanks for lifehacker for bringing the ideas together. if you want to get up earlier, stop staying you have so late. all these brains making over a million apps. we still have not found a cure for cancer, but we get you out of bed in the morning. we should be happy with that; right? coming up, the billions of dollars available for small business owners that go left unused each and every year. how to get your hands on the money, next. ♪
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this is a test.
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from the fox business studios in new york city, this is "the willis report" with gerri willis. gerri: the secret to creating wealth is not so secret anymore. according to my next guest, there are billions of dollars in newly available government money just waiting to be claimed by entrepreneurs or small businesses are camacho on the path to success. here to explain is the founder and ceo of mercantile exchange. chris hurn. where is this money?
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>> well, every year that congress allocates money for the program, among other usda programs, and every year, almost 15 years that i've been in the business now, there is money left in the table. billions of dollars, in fact. it comes from the fact that small business owners just are aware of this tremendous, smarter financing vehicle. gerri: what people are talking about is cheap money to build their business? >> well, it's not so much their business as it is to create wealth for themselves. one huge advantages that small-business owners can pay themselves as opposed to giving their landlord well. i thought about it extensively in the book. how does that make you rich we meant well, it makes you wealthy over time. if you have a brick and mortar business, we have to have a
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facility is better than to pay yearly award. number two, it is an appreciable asset. we have a once in a generation or maybe lifetime opportunity for business owners to buy at historical lows for interest rates. gerri: one of my favorite things that you say is work on your business more than a work in your business. what does that mean? >> a lot of business owners don't step away from their business long enough to understand they are so focused about dealing with customer problems at the rate of seven years later and they have wasted all this money on rent, when they could actually taken another strategy earlier on. [talking over each other] [talking over each other] gerri: i like that. okay, here's something else i like. you say you can easily qualify about being a green project.
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now how do you qualify? >> one of the ways is to be deemed green. environmental engineers can help with this profit. it is nothing more sometimes than having solar panels and insulated glass. when you knew how to do this, there's no cap on the screen project. see continue to buy wealth producing real estate for your small business. gerri: that is very interesting, chris. the book sounds like it is fascinating. good luck with it. thank you for your help tonight. the one all right, meanwhile, something that caught our eye. brand-new exclusive video obtained by fox business shows a new jersey hospital goofing how health care reform to make money
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for doctors by not admitting patients. liz macdonald joins us now. >> what they are basically talking about his health reforms knew, what are called accountable care organizations. in order to provide cost savings for medicare patients -- the way that they arrived at the cost savings -- i will tell you something. it's very striking. for the first time, it provides a window into how doctors and hospitals regard health reform. the video is set to the tune of wayland jennings, looking for love in all the wrong places. but let's take a look at this video and what it is saying.
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>> ♪ ♪ [music playing] ♪ ♪ >> okay, cms stands for the centers for medicare and medicaid services. so what we are seeing is hospital workers pretending to borrow a patient from coming back. what happens under the apo is that they are readmitted. save the comedy. say that they are readmitted after surgery because the wound did not heal. this is what they are afraid of.
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doctors doing less. this is totally opposite of what the president wanted. but the hospital is essentially saying that it is a situation of spoofing. but it's certainly not meant as a mockery, it's about working together in partnership. the gentleman who runs the hospital did say that you see people getting laptops in the video, that is for the new health exchange network. the money that you are seeing exchanges hands -- half of the money, if there is cost savings, the hospitals will keep government. the doctor could get bonuses. gerri: sluts make sure i'm clear
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here. the federal government is sending practitioners to boot me out of the hospital so he or she could get more money for medicare? >> yes, and the other half of the cost savings goes to them. i will tell you something. this is the future of health heh care in this country under health reform. medicare is going to be the second budget line item. the cost savings have to come in. gerri: we thought we were going to reduce costs, now we are getting less care. and we are getting booted out of the hospital. how is obamacare a success? >> yes, you have to wonder about that. when you talk to the workers at the hospital, they do say that we are for better patient care. so when you see the scene with the medicare book, this is government micromanagement. dozens and dozens and dozens of patients under health reform for
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medicare for these apis. gerri: now everyone is going to see this video. thank you so much. gerri: meanwhile, senator jon barrasso joins me. it's always good to have you here, sir. thank you, gerri. gerri: we have been talking about these new exchanges. somehow they think the other one is less attractive, they want to give anyone a more attractive name. twenty-five states in that they are not playing. what does that tell you? >> whatever the president and federal government wants to call them, they are a disaster. twenty-five states are saying no thank you. it is because the secretary of health and human service can't tell the states what it will cost them to set them up. chris christie in new jersey said no thank you. my home state senator in wyoming
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has continued to ask for information and he gets form letters and really not the kind of information that any state would want. gerri: well, i'm concerned that the way that the law is written, if you don't play, the federal government comes in and set this thing up for you. will that mean? what will that look like? how will it compare with states doing this themselves? >> well, no matter who sets it up, people will end up paying more for health care. the idea is that people wanted health care reform so that they could get the care that they need from a doctor that they choose at lower cost. if you like something you have, you really can't keep it. instead of paying less, you're going to be paying more and the quality of your care is going to go down. they exchanges, i think the big problem is that it's not just what you might want based on what you can afford or what might work for your family. these are all government approved products that they have to sell a level of care that might be more expensive or more
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care or more insurance than you are interested in buying and there are a lot of promises about this program. gerri: now we find that a lot of rules and deadlines from this program are just unrealistic. some are even saying that the deadline is ridiculous. health and human services failed to meet deadlines within the first 12 months. the fact that they had this with being up and running by 2014 -- it's like finding a white unicorn. is obama just fundamentally out of touch with the reality of the health care system as it exists? >> as someone who has practiced medicine for 25 years, i believe he is out of touch. the supreme court may have said it's not unconstitutional, but it's still unworkable and still very unpopular and unaffordable for us as a nation.
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gerri: senator, i appreciate your time. thank you for coming on tonight. >> thank you, gerri. gerri: the dow jones industrial is floating with the recovery today. and i told you about best smartphone apps. coming up next, the top five you should have on your cell phone
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gerri: the dow jones closing in on 14,000, but is there a disconnect with the stock market and what is happening in the economy? joining me now is marty
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leclaire. how is that the gdp can be done in 10%, that's the news we got today. and the stock market can be jamming away. >> the stock market can be divorced from the real economy at many times. back in the late '90s the stock market was strong in the economy is strong. the last four years, the economy has been tepid, but the stock market has doubled in. gerri: the all-time high, 14,164, that was back in 1997 -- when might we had hit that level again? will be sued in a. >> well, who knows. we believe that the future is unknowable. secondly, this rally started last summer, it's up about 15%. but it sure does seem like a freight train, so who knows, it could happen sooner rather than later. gerri: you sound not so
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optimistic. chumminess. the chapters about this. why is this market continuing higher? gdp, consumer is not upbeat, where are you finding this massive freight train? >> the last four or five or six years have not been good for the american individual. corporations have actually prospered quite nicely in the last several years. secondly the feds zero interest-rate policy has made investors feel a little bit more confident about things. gerri: yes, no kidding. >> is as if the fed said it's okay to serve and now everyone is serving. gerri: they are not just serving, but building homes on the water. some can make the argument that ben bernanke's policies helping the very rich. they are angry about the fact
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that the fed keeps pumping liquidity into this economy. do you think net net, as this economy starts to recover, frankly you can get into some trouble. good inflation rise? could we see headwinds that are actually result of what the fed has been doing? >> well, you never know there could be unintended consequences. gerri: we are not living with depression now when they keep on doing the same thing. >> well, the economy is still very weak. inflationary signs are not good. the other thing is the 30 other countries in the world doing exactly the same thing. gerri: one country does it on another country must do it. one more question for you here. individual investors are getting involved in the stock market. they pumped $55 billion in stock mutual funds, they are getting very involved. is this a sign? >> well, for the last eight
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years, individual investors have been pumping money into bonds in the bond market keeps going up. it is either people have been talking about the great rotation because the sticker shock from fixed income investors and yields are so low that this piece is that money is rotating back into the stock market. i think instead, probably when it is his individual investors tend to chase performance and stock mutual funds did quite well after. gerri: i think you have something there. you have a theory that is probably true. i feel like individual investors are right on track. thank you for coming on the show tonight. we appreciate it. gerri: all right, we have tonight's top five apps topping the itunes charge charts right
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now. number one is banana kong. number four is landmines. number four is a green bird star wars. number two is the what's app application. plus you can chat with friends all over the world at no additional cost. and today's chart topping application is crafted battles. it lets you create maps and you play to the death with friends from all over the world. you know, i'm not going to be doing that.
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the federal reserve holding its first meeting of 2013 but no new ideas. just more stimulus. a former fed official gives us his take coming up next.
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gerri: the federal reserve deciding to keep pumping more stimulus into the economy. that will keep the economy afloat? analysis comes in two minutes.
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gerri: the federal reserve saying that they are not ready to lead leave the party just yet. they are continuing to boost the economy would he make of the fed's move?
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>> is not surprising because they are talking about different procedures. you know, they did talk about the parts of the economy, which we actually have seen in terms of the gdp numbers, but there are some other signs of slow growth strength, particularly in the housing market and it doesn't change the fundamental view of the economy that is growing but not great. gerri: that's a long way to go, professor. the fed itself says that it's going to keep it but to the title. how long might that take? >> the previous discussion was telling us that they expect the end of 2016 to be consistent with your threshold.
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it is a big problem for them. gerri: it seems to me all the advanced countries, we are barely growing, if at all. shouldn't we be concerned that the federal reserve has tripled its balance sheet at this point? >> there are always issues but i think that a lot of people have gone this dead wrong, which is they're looking at what is called goldstar monetarism that extends the balance sheet and that means there will be a lot of inflation because the growth will occur. i think that's completely wrong. first of all, a lot of this increase has got to a lot of banks which are holding excess reserves, which isn't having a big impact on the economy. so the old-style viewpoint, which has been hocked on by a lot of commentators, they say
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will lead to inflation and it is not happening. inflation is actually too low, it's below the 2% goal we saw what happened in japan with low interest rates. it's like that we are on an iv drip. how are we going to get this economy back on track? well, the federal reserve has to do what it has to do. a big problem is a drag on the economy, the shenanigans that we see in the political process. the unwillingness to deal with our long-term fiscal issues is really a very important driver of uncertainty that is holding back households and business spending. my view is part of the process.
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gerri: if you can figure that out, that will be a major award that you deserve. [laughter] >> we were heading in the right direction. it's been extremely disappointing. gerri: i want to talk to buy more important number that we got today, that was the gdp. this is economic growth in the quarter coming down. one 10th of a percent. "the wall street journal" reporting this afternoon that we haven't had economic expansion. a single quarter down, negative gdp growth, without a subsequent one since 1977. so this does not bode well for the economy. >> no, it certainly is a problem. but you have to look through this. the gdp fluctuates a lot in this context, particularly by a quarter by quarter basis. and we have to look at more detail at the numbers, which i haven't done yet. but the key points is that there
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are some signs that things could stabilize. but the problem is the uncertainty about what future taxes will be. whether we are dealing with fiscal problems in the future, this is actually self-inflicted wounds. the u.s. economy is doing very well, but unfortunately this is a situation we are in. gerri: i appreciate your time. homework is in the mail, okay? >> that is just fine with me. [laughter] gerri: thank you so much. on this day in history, it was on this business then back in 1883 the first cash register was patented. john birch invented the first machine and they sold 110,000 of them. whittier sold the business to the national manufacturing company which updated and improved the cash register by adding the paper roll.
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1.5 million cash registers were sold and today many cash registers are touchscreens computers. if come a very long way since 130 years ago today. we will be right back pppp÷ all stations come over to mission a for a final go.
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this is for real this time. step seven point two one two. fy and lock. command is locked. five seconds. three, two, one.
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standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. have given way to sleeping. tossing and turning where sleepless nights yield to restful sleep. and lunesta®(eszopiclone) can help you get there. like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. lunesta should not be taken together with alcohol. abnormal behaviors may include aggressiveness, agitation, hallucinations, or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions such as tongue or throat swelling occur rarely and may be fatal. side effects may include unpleasant taste, headache, dizziness, and morning drowsiness. ask your doctor if lunesta is right for you.

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